With advancement in technology, automatic teller machines, or ATMs, have made withdrawing money from your bank account a lot easier, but they have their own limitations. What happens if the ATM malfunctions and your bank account is wrongfully debited for a failed transaction?
From 1 July 2011, if your bank fails to
reimburse you the money debited wrongfully from your account due to failed ATM transactions within seven days of your complaint, the bank will have to "pay a compensation of Rs 100 per day".
Until now, banks had to disburse the money within 12 days of complaint.
Now pay more for using other banks' ATM "Any customer is entitled to receive such compensation for delay, only if a claim is lodged with the issuing bank within 30 days of the date of the transaction," the Reserve Bank of India (RBI) said in its notification.
Separately, the RBI has also suggested a shift to chip-based credit and debit cards from the magnetic strip ones to make transactions safer. Unlike magnetic strip-based cards, cards with embedded chips are safer and difficult to duplicate.
It also wants cards to have identification codes for security.
